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Gujarat High Court

G I D C Plot And Shed Holders Association ... vs Gujarat Industrial Development ... on 10 June, 2015

Bench: Jayant Patel, Rajesh H.Shukla

         C/SCA/13198/2014                              ORDER



           IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

         SPECIAL CIVIL APPLICATION  NO. 13198 of 2014

==========================================================
    G I D C PLOT AND SHED HOLDERS ASSOCIATION (DARED)  & 
                      5....Petitioner(s)
                            Versus
        GUJARAT INDUSTRIAL DEVELOPMENT CORPORATION  & 
                      2....Respondent(s)
==========================================================
Appearance:
VIRAL K SHAH, ADVOCATE for the Petitioner(s) No. 1 ­ 6
DS AFF.NOT FILED (R) for the Respondent(s) No. 3
MR RITURAJ M MEENA, ADVOCATE for the Respondent(s) No. 1
RULE SERVED BY DS for the Respondent(s) No. 1 ­ 2
==========================================================

         CORAM: HONOURABLE MR.JUSTICE JAYANT PATEL
                and
                HONOURABLE MR.JUSTICE RAJESH H.SHUKLA
 
                            Date : 10/06/2015
 
                          ORAL ORDER

  (PER : HONOURABLE MR.JUSTICE JAYANT PATEL)

1. The   petitioners   by   this   petition   are   seeking  appropriate   writ   to   declare   clause   22   of   the  Allotment Letter (Annexure­A) and the undertaking  (Annexure­B) being arbitrary, illegal and nonest  and   it   is   prayed   that   the   respondent   GIDC   be  restrained from claiming the amount under clause  22   of   the   Letter   of   Allotment   in   light   of   the  lack   of   diligence   and   suppression   before   the  Court of law.

2. We   have   heard   Mr.   Percy   Kavina,   learned   Senior  Counsel with Mr. Viral K. Shah, learned counsel  for the petitioners and Mr. Mihir Joshi, learned  Senior   Counsel   with   Mr.   Meena,   learned   counsel  for the respondent Corporation and its officers.

Page 1 of 4 C/SCA/13198/2014 ORDER

3. The   only   contention   raised   on   behalf   of   the  petitioners to support the petition is that the  GIDC   while   pursuing   the   matter   for   payment   of  compensation under the Land Acquisition Act, did  not   properly   pursue   the   matter   before   the  concerned Reference Court as well as before this  Court   and   also   before   the   Apex   Court   and  resultantly,   if   the   liability   to   pay   the  compensation   is   enhanced,   such   can   be   said   as  non­prudent action taken by GIDC and hence, would  not   be   entitled   to   invoke   clause   22   by   which  indemnity   bond     was   given   by   the   respective  petitioners.     It   was   submitted   that   in   the  litigation   under   the   Land   Acquisition   Act   for  payment   of   compensation,   the   petitioners   had   no  say   nor   could   be   permitted   to   be   impleaded   as  party since GIDC pursued the matter as if it was  public money to be paid by way of compensation.  Hence, Mr. Kavina submitted that this Court may  consider the matter.

4. As such, if the matter is to be considered on the  aspect   of   conduct   of   the   petitioners,   the  petitioners are party to the letter of allotment,  by   their   volition   accepted   the   condition   and  thereafter, have also executed the indemnity bond  and   therefore,   in   normal   circumstances,   the  petitioners   cannot   be   heard   to   say   that   the  condition is illegal or that the liability would  not be attracted pursuant to the indemnity bond. 

5. The attempt to contend that there was no prudent  Page 2 of 4 C/SCA/13198/2014 ORDER approach on the part of GIDC to pursue the matter  under   the   Land   Acquisition   Act   for   payment   of  compensation   cannot   be   countenanced   for   the  following reasons ­

6. The first is that it is not a matter where GIDC  abandoned   the   litigation   and   acted   in   careless  manner by accepting the compensation declared by  the   reference   court   at   the   first   instance.     On  the   contrary,   it   appears   that   the   GIDC   pursued  the   litigation   and   made   attempt   to   get   the  reduction   of   the   compensation   by   adopting   the  course   available   in   law,   i.e.,   by   preferring  appeal before this Court and further before the  Apex Court.   Not only that, but thereafter, the  against   the   decision   of   the   Apex   Court,   Review  Petition   was   also   preferred   by   the   GIDC   for  pursuing   the   matter.     But   it   is   a   different  matter that the Apex Court did not consider the  review   and   ultimately   maintained   the   amount   of  compensation already ordered earlier.  

7. The   second   is   that,   at   no   point   of   time,   any  attempt was made on the part of the petitioners  to intervene in the proceedings pertaining to the  Land   Acquisition   for   payment   of   compensation   by  showing that GIDC is acting in collusion or that  it has remained lethargic and resultantly, higher  liability on the part of the petitioners.

8. The third aspect which may be considered is that  by   implied   conduct   of   the   petitioners,   the  Page 3 of 4 C/SCA/13198/2014 ORDER petitioners   have   allowed   the   litigation   to   be  pursued by GIDC without any intervention at their  instance and when the liability is to be honoured  as   per   the   Indemnity   Bond,   by   way   of   a   second  thought,   the   ground   is   made   out   for   contending  that GIDC did not act prudently for pursuing the  litigation.

9. In view of the above, we find that such attempt  cannot   be   countenanced.     In   any   case,   when   the  Apex   Court   has   confirmed   the   amount   of  compensation,   it   would   not   lie   in   the   mouth   of  the petitioners to contend that higher liability  is  to  be  shouldered   by  them  on  account  of  non­ pursuation   of   the   matter   under   the   Land  Acquisition Act by GIDC for which otherwise the  petitioners   have   impliedly   by   their   express  conduct agreed to be abided by.

10. In   view   of   the   above,   we   do   not   find   any  case   for   interference.     Hence,   the   present  petition   is   not   entertained   and   therefore,  dismissed.

(JAYANT PATEL, J.)  (RAJESH H.SHUKLA,  J.)  bjoy Page 4 of 4